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HomeMy WebLinkAboutReso 91-079 - Approve the lease & a permit for Commercial Activities between COR & Hillside Aviation, Inc. at Benton Airpark RESOLUTION NO. l' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE LEASE AND A PERMIT FOR COMMER- CIAL ACTIVITIES BETWEEN THE CITY OF REDDING AND HILLSIDE AVIATION, INC. AT BENTON AIRPARK, AND AUTHOR- IZING THE MAYOR TO SIGN SAME. IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows: 1 . That the City Council of the City of Redding hereby i approves the Lease and a Permit for Commercial Activities between the City of Redding and Hillside Aviation, Inc. at Benton Airpark, effective July 1 , 1990. A true copy of each is attached hereto and incorporated by reference. 2 . That the Mayor of the City of Redding is hereby autho- rized and directed to sign said Lease and Permit on behalf of the City of Redding, and the City Clerk is hereby authorized and directed to attest the signature of the Mayor and to impress the official seal of the City of Redding. I HEREBY CERTIFY that the foregoing Resolution was intro- duced and read at a regular meeting of the City Council of the City of Redding on the 19th day of February 1991, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Arness, Dahl , Fulton, Moss & Buffum NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None N-ANCYB/UFj M, M City /Redding ATTEST: FORM A PROVED: ETHEL A. NICHOLS, City Clerk RANIDALL A. HAYS, ti-V Attorney r 1� a 1 i i i PERMIT FOR COMMERCIAL ACTIVITIES BENTON AIRPARK HILLSIDE AVIATION, INC. i j Effective July 1 , 1990 i i WHEREAS, the CITY OF REDDING, a Municipal Corporation and General Law City, hereinafter referred to as "CITY, " owns and maintains Benton Airpark, hereinafter referred to as "Airport, " situate in the City of Redding, Shasta County, California; and WHEREAS, HILLSIDE AVIATION, INC. , a California Corporation, i has entered into a Lease Agreement with CITY effective July 1 , 1990 , hereinafter referred to as "Lease Agreement, " covering certain hangar facilities at said Airport, hereinafter referred to as "Premises" ; and WHEREAS, said Premises are more particularly described in Exhibit "A" and shown on Exhibit "B" attached hereto and incorpo- rated herein by reference; and WHEREAS, in conjunction with said Lease Agreement, HILLSIDE AVIATION, INC. , hereinafter referred to as "OPERATOR," wishes to I carry on revenue-producing commercial activities in said hangar facilities at said Airport, as hereinafter described, under japproval from the CITY in accordance with Section 3 . 08 . 030 of the Redding Municipal Code and Resolution Nos. 2978 and 4162; and WHEREAS, OPERATOR has now applied for a Permit; and WHEREAS, City Council has determined that the proposed commercial activities in said hangar facilities are compatible with said Airport, and that the best interests of the public and the CITY will be served by approval of this Permit; NOW, THEREFORE, CITY hereby grants to OPERATOR a Permit, license, and privilege to conduct and carry on from the Premises at said Airport the hereinafter-described revenue-producing commercial activities for a period of five ( 5) years, commencing i 1 1 July 1 , 1990 , and terminating June 30 , 1995 ; with rights of first refusal as set forth in the Lease. This Permit is subject to the following terms and j conditions: 1. COMMERCIAL ACTIVITIES. A. OPERATOR' s commercial activities shall consist of conducting the following commercial activities , and no others: ( 1) Aircraft maintenance and repair. ( 2) Subleasing only for aircraft storage and for aircraft maintenance and repair. The provisions of the foregoing paragraph shall not be construed to authorize OPERATOR to conduct a separate business or businesses at said Airport, but shall relate only to OPERATOR' s aviation operation, activities, uses, and 1 purposes in connection therewith, or incidental to, or related thereto, as specified in 1(A) above. B. Any other commercial activity that OPERATOR may wish to carry on at said Airport, in connection with the foregoing or independently, shall first require the written permission of CITY. ,I I 2 . RIGHT OF ACCESS. I For all purposes contemplated by this Permit, OPERATOR shall have the right of access to and the use of facilities at the i Airport designed for common use, such as landing areas, aprons, taxiways, landing lights, beacons, signals, and other common use facilities available at said Airport for the convenience, accom- modation and operation, landing and take-off of aircraft. The 1 rights herein extended to OPERATOR shall include the right to land, take off , load, and unload persons and personal property from aircraft. I -2- 3 . USE OF AIRPORT. CITY licenses OPERATOR to (a) use, in common with others authorized so to do, all runways , taxiways, and aprons which are or may hereafter be provided at said Airport; and (b) to use all other facilities, improvements, equipment, and services which are j or may hereafter be provided at the Airport, except those under lease, permit, or assignment to another. These uses shall include and be limited to those reasonably necessary for the proper operation by OPERATOR of its services as outlined in paragraph 1(A) of this Permit; and CITY will grant to OPERATOR, without charge, all rights reasonably necessary for such uses. 4 . AIRPORT FACILITIES. Nothing herein contained shall be construed as entitling OPERATOR to the exclusive use of any services, facilities, or property rights at said Airport, except those facilities described in Exhibit "A" attached hereto. 5. SERVICE TO THE PUBLIC. OPERATOR shall make its services available to the public without unjust discrimination, and shall refrain from imposing or levying excessive, discriminatory, or otherwise unreasonable charges or fees for any use of its services; provided, however, that OPERATOR shall have the privilege of refusing service to any i person or persons for just cause, without discrimination by virtue of race, color, creed, or sex. 6 . SECURITY RESPONSIBILITIES. OPERATOR agrees to accept its security responsibilities with regard to access by authorized and unauthorized persons using the herein Premises at all times that the building is left open. I -3- i � 7 . WASTE; QUIET CONDUCT. OPERATOR shall not commit or suffer to be committed any I waste upon the Premises , nor any nuisance or other act or thing which may disturb the quiet enjoyment of any other occupant or 1 use of CITY' s adjoining Premises. 1 8 . MECHANICS' LIENS. OPERATOR shall keep the Premises and the property on which I the Premises are situated free from any liens arising out of any I work performed, material furnished, or obligations incurred by OPERATOR. 9 . RULES AND REGULATIONS. OPERATOR covenants and agrees to comply with all statutes, laws, ordinances, regulations, orders, judgments, decrees, directions , and requirements of all federal, state, county, and city authorities now or hereafter applicable to the herein Premises and facilities, or to any adjoining public ways. 10 . RESTRICTION OF OPERATIONS. If CITY' s operation of the Airport or OPERATOR' s operations at the Airport are substantially restricted by any competent governmental or judicial action, either party hereto will have the right, upon notice, to an equitable reduction in the services and facilities to be afforded hereunder, or the annual fee due 1 hereunder, from the time of such notice until such restriction j has been remedied and normal operations restored. 1 11. MAINTENANCE AND OPERATION OF AIRPORT. CITY will properly maintain and operate the Airport for the t safe, convenient, and proper use thereof by OPERATOR, and in accordance with all FAA rules and regulations. i I -4- I i 12 . CITY ADMINISTRATION. Whenever OPERATOR is required to secure the approval or consent from CITY herein, CITY shall mean the Director of Airports of CITY. However, at the option of the Director of Airports or the OPERATOR, and according to proper procedure, any such questions may be referred to the City Council of CITY, whose decision thereon shall be final. 1 13 . TAXES. OPERATOR agrees to pay promptly when due any and all taxes assessed against its personal property and any possessory interest tax levied by reason of its occupancy of the Premises. 14 . UTILITIES. J OPERATOR shall be responsible for the prompt payment of any utility service charges applicable to the area leased to it by the provisions of the Lease, or by this Permit, and the failure to pay these charges promptly shall expressly constitute a material breach of this Permit. i 15 . INSURANCE. A. This Permit is granted upon the express condition that CITY, a its officers , agents, and employees, shall be free from any and all liability and claims for damages for personal injury, death, or property damage in any way connected with OPERATOR' s activities at said Airport, including claims of OPERATOR, its officers, agents, employees, and invitees. CITY, its officers, agents, and employees, shall be held harmless from any and all liability, loss, cost, or obligation on account of or arising out of any such injury, death, or loss, however occurring. B. OPERATOR shall procure and maintain from a company authorized to do business in the State of California, at its i -5- sole cost and expense and at all times during the term of this Permit, comprehensive general liability insurance policy for aircraft liability and airport Premises liability in an amount of $1 , 000 ,000. 00 combined single limits. Said policy shall name CITY, its ,officers, agents, and employees, as additional insured, and shall further contain a provision obligating the insurance carrier to notify CITY in writing at least ten ( 10) days prior to any cancellation or reduction of such insurance. A Certificate of Insurance evidencing such coverage and notice requirement shall be approved by the Risk Manager of CITY, and filed with the Risk Manager of CITY prior to the commencement of this Permit. C. It is further understood and agreed as a condition of this Permit that OPERATOR will provide workers' compensation insurance on its employees, and furnish the Risk Manager of CITY with a Certificate evidencing such insurance, approved by said Risk Manager. Said Certificate shall contain a provision obligating the insurance carrier to notify CITY in writing at least ten ( 10) days prior to any cancellation or J reduction of such insurance. To obtain an exemption from 1 this requirement should OPERATOR have no employees, OPERATOR shall provide the City Clerk of CITY with a letter stating that it is not employing any person or persons in any manner so as to become subject to the workers' compensation laws of i California; provided, however, that should OPERATOR later j become subject to the workers ' compensation provisions of I the Labor Code, it will forthwith comply with the insurance requirements set forth above. 16. SIGNS. The size and location of signs advertising the activities of OPERATOR shall be subject to the prior written approval and -6- i control of CITY. i 17 . TRADE FIXTURES. Any trade fixtures , equipment, and other property brought, installed, or placed by OPERATOR in or about the herein Premises ishall be and remain the property of OPERATOR except as otherwise provided herein. OPERATOR shall have the right at any time during the term hereof to remove any or all of its property, Isubject to OPERATOR' s obligation to repair all damage, if any, resulting from such removal. Such trade fixtures, equipment, and other property of OPERATOR shall be removed by OPERATOR from the herein Premises by the expiration or earlier termination of this Permit. 18 . RIGHT TO ENTER AND MAKE REPAIRS. CITY and its authorized officers, agents, employees , contractors, subcontractors, and other representatives shall have the right to enter on and into OPERATOR' s Premises and facilities I (as set forth in attached Exhibit "A" ) for the following purposes: (a) To inspect said Premises and facilities at reasonable intervals during regular business hours (or at any time I in case of emergency) to determine whether OPERATOR has complied with and is complying with the terms and conditions of this Permit with respect to such Premises and facilities; (b) In the exercise of CITY police power; (c) To inspect the herein Premises and facilities, and perform any and all things with reference thereto which CITY is obligated or authorized to do as set forth herein. No such entry by or on behalf of CITY within or upon said Premises and facilities shall cause or constitute a termination of this Permit, or be deemed to constitute an interference with the possession thereof by OPERATOR. -7- I 19 . ASSIGNMENT OR SUBLETTING. Other than the express permission to sublet as set forth in paragraph 2 of the Lease, OPERATOR shall not assign this Permit or any interest therein, and shall not sublet the Premises or any part thereof , or any right or privilege appurtenant thereto, nor suffer any other person (agents and employees of CITY excepted) to occupy or use the Premises or any portion thereof without the written consent of CITY first had and obtained. A consent by CITY to one assignment, subletting other than as set forth in paragraph 2 of the Lease, occupancy, or use by another party shall not be deemed to be a consent to any subsequent assignment, subletting, occupancy, or use by another person or entity. Any such assignment, subletting, occupancy, or use by another person or entity without such consent by CITY shall be void and shall, at the option of CITY, terminate this Permit. This Permit shall not, nor shall any interest therein, be assigned as to the interest of OPERATOR, by operation of law, without the written consent of CITY. CITY agrees that it will not arbitrarily or capriciously withhold its consent required hereunder. i 20 . BANKRUPTCY AND INSOLVENCY. If OPERATOR shall be adjudged bankrupt, either by voluntary ! or involuntary proceedings, or if OPERATOR shall be the subject of any proceeding to stay the enforcement of obligations against it in the form of reorganization or otherwise under and pursuant to any existing or future laws of the Congress of the United States, or if OPERATOR shall discontinue business or fail in business, or abandon or vacate said Premises, or make an assign- ment for the benefit of creditors, or if said Premises should come into possession and control of any trustee in bankruptcy, or i if any receiver should be appointed in any action or proceeding with power to take charge, possession, control, or care of said Premises, CITY shall have the option to forthwith terminate this -8- i 1 Permit and reenter the Premises and take possession thereof . In ' no event shall this Permit be deemed an asset of OPERATOR after adjudication in bankruptcy. 1 I 21. REVOCATION OF LEASE, PERMIT, LICENSE, OR AGREEMENT. CITY shall have the right to terminate any lease, permit, license, or agreement ( including that of OPERATOR herein) covering a commercial or noncommercial operation, and to revoke a lease, permit, license, or agreement on any land or facility at the Airport ( including that of OPERATOR herein) for any cause or reason provided by these standards, by the lease, permit, license, or agreement itself , or by law, or upon the happening of one or more of the following: a. Filing a petition of voluntary or involuntary bank- ruptcy by the lessee, permittee, licensee, or operator. b. The making by the lessee, permittee, licensee, or operator of any general assignment for the benefit of creditors. i C. The abandonment or discontinuance of any operation at the Airport by a commercial operator; or the failure to conduct any service, operation, or activity which the lessee, permittee, licensee, or operator has agreed to provide under the terms of his contract with the City of Redding. If this condition exists for a period of ten ( 10) days without prior written consent of the City of Redding, it will constitute an abandonment of the land or facilities and the lease, permit, license, and/or agreement shall become null and void. d. The failure of a lessee, permittee, licensee, or operator to pay promptly when due all rents, charges, fees, or other payments owed to the City of Redding in accordance with his contract with the City. e. The failure of the lessee, permittee, licensee, or operator to remedy any default, breach, or violation of the Airport Rules and Regulations by him or his employees within thirty ( 30) days after notice from the City of Redding. I I -a- i f . Violation of any of these standards and rules and regulations, or failure to maintain current licenses required for the operations permitted under his or her lease, permit, license, and/or agreement with the City of Redding. I g. Intentionally supplying the City of Redding with false or misleading information or misrepresenting any material fact on the application or documents, or in statements to or before the City, or intentionally failing to make full disclosure on a financial statement, or other required documents. h. The failure of the licensee, permittee, licensee, or operator to perform any provision or covenant within his contract with the City of Redding. 22. NOTICE. Any notices or demands that may be given by either party hereunder, including notice of default and notice of termination, shall be deemed to have been fully and properly given when made in writing, enclosed in a sealed envelope, and deposited in the United States Post Office, certified mail, postage prepaid, addressed as follows: To CITY c/o Director of Airports, j760 Parkview Avenue, Redding, California 96001-3396 ; and to OPERATOR at 2600 Gold Street, Redding, California 96001. i 23 . CEQA. It has been determined that this matter is categorically exempt from the provisions of the California Environmental Quality Act. 24 . ENTIRE AGREEMENT. This Permit sets forth the entire agreement between the parties hereto. Modifications or additions to this Permit shall be considered valid only when mutually agreed upon by the parties in writing. -10- 25 . SUCCESSORS AND ASSIGNS. All covenants, stipulations , and agreements in this Permit shall extend to and bind the legal representatives , successors, and assigns of the respective parties hereto. i IN WITNESS WHEREOF, the parties hereto have executed this Permit on the day and year set forth below, in the presence of their respective officers duly authorized in that behalf. CITY OF REDDING DATED: 1990 By: NANCY BUFFUM, Mayor i HILLSIDE AVIATION, INC. DATED: �C�, 199 By: �,... I STEVE MILLER, President i I 1 i ATTEST: FORM APPROVED: I ETHEL A. NICHOLS, City Clerk RANDALL A. HAYS, City Attorney -il- • I i i I EXHIBIT n An I HILLSIDE AVIATION LEASE AREA i Commencing at a point on the centerline of the runway of Benton Airpark, which point is designated as Engineer' s Station 0/00 on the plans for grading and paving of Benton Airpark and which point has the following California State Plane Coordinates: I E = 1,887 ,007. 07 N = 453,535. 89 thence S. 7003108" E. , on and along the centerline of said runway, a distance of 1202 feet to Engineer' s Station 12f02 S. , 0/00 E. ; thence N. 82°56152" E. , a distance of 247 feet to the true point of beginning of this description, which is Engineer' s Station 12f02 S. , 2/47 E. ; thence N. 82056152" E. , a distance of 198 feet to Engineer ' s Station 12/02 S. , 4f45 E. ; thence S. 7003108" E. , a distance of 35 feet to Engineer ' s Station 12437 S. , 4-/45 E. ; thence S. 82156152" W. , a distance of 198 feet to Engineer' s Station 12/37 S. , 247 E. ; thence N. 7003108" W. , a distance of 35 feet to the true point of beginning of this description. Containing 6930 square feet. i I I i I i' i I i PLQ�ER STREET STA. 0+00 P❑INT OF COMMENCEMENT i ST. JOSEPH SCHOOL I I 1 I I � \ I 0 I o DENTON AIRPORT I o N 0 IN j o l ICD TRUE POINT OF BEGINNING 'I I I 198. 00 ' 35, 00 ' I I N, 82'S 'S2 E w L 247. 00 ' 198. 00 ' � A � Y I � � I I I i i I EXHIBIT E I HILLSIDE AVIATION LEASE AREA i i L E A S E THIS LEASE is made and entered into, effective July 1 , 1990 , by and between the CITY OF REDDING, a Municipal Corporation and General Law City, hereinafter referred to as "LESSOR," and HILLSIDE AVIATION, INC. , a California Corporation, hereinafter referred to as "LESSEE. " W I T N E S S E T H: WHEREAS, LESSOR owns and maintains Benton Airpark (herein- after called "Airport" ) , an Aircraft Facility located in the City of Redding, County of Shasta, State of California; and WHEREAS, LESSEE desires to lease certain hangar facilities at said Airport as described in Exhibits A and B attached hereto and incorporated herein by reference, and has applied to the City Council of LESSOR for a permit to carry on revenue-producing activities in said hangar facilities in accordance with Section 3 . 08 . 030 of the Redding Municipal Code and City Council Resolution No. 2978 ; and WHEREAS, City Council, in accordance with Resolution No. 2978 , has determined that the proposed uses of said hangar facilities are compatible with the Master Plan of the Benton i Airpark; and that the best interests of LESSOR and the public will be served by approval of LESSEE' s application for a permit; and WHEREAS, LESSEE has indicated a willingness to properly keep, maintain, and improve said hangar facilities in accordance with the standards established by LESSOR; and WHEREAS, LESSEE desires to obtain and avail itself of the privileges , rights, uses , and interests therein and herein; and WHEREAS, LESSOR deems it advantageous to the City and to the operation of said Airport to grant, demise, and lease unto LESSEE the hangar facilities (hereinafter called "Premises" ) described I i I ' j herein, together with said privileges , rights, uses, and interests therein, as hereinafter set forth; and WHEREAS, it has been determined that this matter is categorically exempt from the provisions of the California Environmental Quality Act; NOW, THEREFORE, IT IS AGREED by and between the parties hereto as follows: 1. TERM. For and in consideration of the terms, covenants, conditions , and agreements herein set forth to be kept and performed by LESSEE, LESSOR does hereby grant, demise, and lease unto LESSEE, subject to all the terms , covenants, conditions, and agreements hereinafter set forth, those certain Premises described in Exhibit "A" and depicted in Exhibit "B" attached hereto and incorporated herein by reference, for a period of five ( 5) years commencing July 1 , 1990, and terminating June 30 , 1995. At the end of said term, LESSEE shall have both the right of first refusal as to any lease of such Premises negotiated by LESSOR with any other party and the right of first refusal as to any sale of said Premises in the event LESSOR elects to sell same. These rights of first refusal given to LESSEE shall not be construed as a waiver of LESSOR' S right to remove LESSEE for i breach of any of the terms, covenants , conditions, and agreements contained in this Lease by LESSEE, nor of LESSOR' S right to remove LESSEE from the subject Premises at the end of the five- year term of this Lease in the event LESSOR determines to leave the Premises vacant, operate the Premises itself , or devote the Premises to a different type of municipal or governmental i purpose. I i t I ii 1 2. RIGHT TO SUBLEASE. LESSEE may sublease portions of the Premises only for I aircraft storage and aircraft maintenance and repair. The i 1 provisions of paragraph 17 herein shall apply to any such t sublease. 3. USE OF PREMISES. A. The Premises demised herein and any improvements subsequently constructed thereon may be used by LESSEE- in support of LESSEE' s Hillside Aviation, Inc. activity authorized under separate Permit and by Resolution No. 90- 256 for the conduct of the following commercial activity, and no other: ( 1) Aircraft maintenance and repair. B. The Premises demised herein and any improvements i subsequently constructed thereon may also be used for those purposes as described in paragraph 2, RIGHT TO SUBLEASE, above. C. The provisions of the foregoing paragraph shall not be construed to authorize LESSEE to conduct a separate business or businesses at said Airport, but shall relate only to LESSEE' s aviation operation, activities, uses, and purposes in connection therewith, or incidental to, or related thereto, as specified in 3(a) above. D. LESSEE shall have the right of access to and the use of { facilities at the Airport designed for common use, such as landing areas, aprons , taxiways, landing lights, beacons, signals, and other common use facilities available at said Airport for the convenience, accommodation and operation, landing and take-off of aircraft. The rights herein extended to LESSEE shall include the right to land, take -3- i 1 I off , load, and unload persons and personal property from aircraft. 4 . GROUND RENTAL. LESSEE shall pay to LESSOR hangar facility rental in accordance with the following provisions: (a) For the 6,930 square foot Premises, Eleven Thousand Seven Hundred Dollars ( $11 ,700.00 ) per year. Said annual rental shall be payable in twelve ( 12) monthly installments of Nine Hundred Seventy-five Dollars ( $975. 00) each, payable to LESSOR in advance on the I 10th day of each month during the term of this Lease, commencing on the 10th day of July, 1990 . (b) Any rentals, fees , and charges not delivered to LESSOR by the 10th day of the month may be subject to a service charge of one and one-half percent ( 1 1/20) per i month, and cumulatively one and one-half percent ( 1 1/20) each month thereafter, not to exceed State law limit. Service charges may be changed by City Council Resolution. (c) On December 30, 1992, the rental payment shall be evaluated and adjusted by the average of the United States Bureau of Labor Statistics National Consumer Price Index for the San Francisco-Oakland-San Jose Area for the first 2 1/2-year term of this Lease; and a new rental payment shall be determined and become effective ifor the remaining 2 1/2-year term of this Lease. Provided, however, that in no event shall the minimum i rental be less than the minimum provided for in paragraph 4(a) above. i -4- i I 5. MAINTENANCE AND REPAIRS. LESSEE shall, at its sole cost and expense , keep and i maintain said internal hangar area, improvements, and appurtenances, and every part thereof , in good and sanitary order, condition, and repair, hereby waiving all right to make repairs at the expense of LESSOR as provided in Section 1942 of � the Civil Code of the State of California, and all right provide for by Section 1941 of said Civil Code. Such maintenance shall 1 expressly include a regular and consistent program of repainting j and prompt repair of any damaged portions of the internal. building area. LESSOR will maintain the external hangar building portion. 6. ALTERATIONS AND ADDITIONS. LESSEE shall not make any alterations to or erect any additional structures or improvements on the leased ground area without prior written consent of LESSOR. Any alterations or additions approved by LESSOR shall be constructed at the sole expense of LESSEE. 7. SIGNS. LESSEE shall be privileged to erect such signs and i advertising media as may be required, and place the same upon the property, subject to first securing the written approval of LESSOR' s Director of Airports who shall determine whether such i advertising media is aesthetically harmonious with said improvements and facilities at the Airport. The Director of Airports shall also determine if the proposed signs meet the City of Redding sign ordinance. B. TRADE FIXTURES. Any trade fixtures, equipment, or other property brought, -5- 1 I installed, or placed by LESSEE in or about the leased Premises shall be and remain the property of LESSEE, except as otherwise provided herein. LESSEE shall have the right at any time during the term hereof to remove any or all of its property, subject to 1 LESSEE' S obligation to repair all damage, if any, resulting from such removal. Such trade fixtures, equipment, and other property I of LESSEE shall be removed by LESSEE from the leased Premises upon the expiration or earlier termination of this Lease. 9. UNLAWFUL USE. No building, structure, or improvement of any kind shall be erected, placed upon, operated, or maintained on the leased area, nor shall any business or operation be conducted or carried on therein or thereon in violation of any ordinance , law, statute, bylaw, order, or rule of the governmental agency having jurisdiction thereover. 10. WASTE; QUIET CONDUCT. LESSEE shall not commit nor suffer to be committed any waste upon said area or improvements, nor any nuisance or other act or thing which may disturb the quiet enjoyment of the use of said !� Airport or surrounding property. I 11. RULES AND REGULATIONS. LESSEE agrees to observe and obey all rules and regulations promulgated and enforced by LESSOR and any other appropriate authority having jurisdiction over said Airport during the term of this Lease. LESSOR covenants that the rules and regulations so promulgated will apply to and will be enforced uniformly by LESSOR as to all lessees of the Airport as their interests and activities are related thereto. -6- I 1 { 12. DISCRIMINATION. LESSEE, in the operation and use of Benton Airpark, or of any of its facilities thereon, will not, on the grounds of race, i color , sex, or national origin, discriminate nor permit i discrimination against any person or group of persons in any manner prohibited by the State of California or the United States of America. I 13. HOLD HARMLESS; INSURANCE. A. This Lease is granted upon the express condition that LESSOR, its officers , agents, and employees , shall be free from any and all liability and claims for damages for personal injury, death, or property damage in any way connected with LESSEE' s use of the Premises hereunder ! leased, including claims of LESSEE, its officers, agents , employees, and customers. LESSEE shall indemnify and save i harmless LESSOR, its officers , agents, and employees , from any and all liability, loss, cost, or obligation on account of or arising out of any such injury, death, or loss caused by the negligence or other legal fault of LESSEE or its officers, agents, employees, and customers. B. It is specifically understood and agreed as a condition of 1 this Lease that LESSEE shall procure and maintain from a Jcompany authorized to do business in the State of j California, at its sole cost and expense and at all times during the term of this Lease, comprehensive general i liability insurance policy for aircraft liability an airport Premises liability in an amount of $1,000,000 . 00 1 combined single limits . Said insurance shall be in form and content sufficient and adequate to save LESSOR, its officers, agents, and employees , harmless from any and all claims arising out of the use and occupancy of said -7- I Premises . A Certificate evidencing such insurance shall be approved by the Risk Manager of LESSOR and filed with him, naming LESSOR, its officers, agents, and employees, as additional insureds and guaranteeing at least 10 days' ! advance notice to LESSOR, in writing, before any cancellation or reduction of such insurance coverage. C. LESSEE shall also secure and maintain fire insurance on buildings and structures if erected by LESSEE as a part of the aviation operation created by this Lease, and insurance coverage shall be to the full insurable value of the structures and buildings and contents as erected and placed upon the leased area. LESSEE further agrees that in the event of any fire or partial or complete destruction of the structures erected by LESSEE, any proceeds of insurance received by LESSEE shall be utilized in the replacement, reconstruction, or repair of the damaged or destroyed improvements . D. It is further understood and agreed as a condition of this Lease that LESSEE will provide workers' compensation insurance on its employees , and shall furnish the Risk Manager of LESSOR with a Certificate evidencing such insurance. To obtain an exemption from this requirement should LESSEE have no employees, LESSEE shall provide the Risk Manager of LESSOR with a letter stating that LESSEE is not employing any person or persons in any manner so as to become subject to the workers' compensation laws of I f� California; provided, however , that should LESSEE later ! become subject to the workers' compensation provisions of the Labor Code, it will forthwith comply with the insurance requirements set forth above. E. All insurance requirements on the part of LESSEE to be i -8- performed as set forth in this Lease will be reevaluated on July 1 , 1993 , for appropriate coverage. j 14. TAXES. LESSEE agrees to pay promptly all taxes and assessments which shall be assessed upon any real or personal property, including possessory interest taxes, owned by LESSEE or in which LESSEE has a leasehold interest to the extent of LESSEE' s interest therein, as such interest may appear at the time when said taxes or assessments become due or payable under any levy or assessment by any legally authorized governmental agency. 15. UTILITIES. LESSEE shall be responsible for the prompt payment of any utility service charges applicable to the area leased to it by the provisions of this Lease, and the failure to pay these charges promptly shall expressly constitute a material breach of this Lease. 16. INSPECTION AND NOTICE. Insofar as the same may be necessary for the protection of LESSOR' s rights , LESSOR or its agents shall, at any and all times, have the right to go upon and inspect the ground area and improvements hereby leased, and any and every structure or improvement erected or constructed, or in the course of being erected or constructed, repaired, added to, rebuilt, or restored thereon, and also to serve or to post and to keep posted thereon, or on any part thereof , any notices provided in Section 1183 . 1 of the Code of Civil Procedure of the State of California or any other section of the Code of Civil Procedure of the State of California, or any other notice or notices that may be at any time required or permitted by law. -9- i 1 i 17. ASSIGNMENT OR SUBLETTING. Other than the express permission to sublet as set forth in ' paragraph 2 of this Lease, LESSEE shall not assign this Lease or any interest therein, and shall not sublet the Premises or any part thereof or any right or privilege appurtenant thereto, nor j suffer any other person (the agents and employees of LESSEE excepted) or entity to occupy or use said Premises or any part thereof , without the written consent of LESSOR first had and obtained. A consent by LESSOR to one assignment, subletting other than as set forth in paragraph 2 of this Lease, occupancy, or use by another party shall not be deemed to be a consent to any subsequent assignment, subletting, occupancy, or use by another person or entity. Any such assignment, subletting, occupancy, or use by another person or entity without such written consent shall be void and shall, at the option of LESSOR, terminate this Lease. LESSOR shall not unreasonably withhold its I consent to a sublease or assignment by LESSEE. This Lease or any interest therein shall not be assigned as to the interest of LESSEE by operation of law without the written consent of LESSOR; provided, however, that if LESSEE' s financial arrangements require that this Lease be made assignable to LESSEE' s lender, said lender being a recognized lending institution, said consent to assign, including the lender' s right to reassign, shall not be necessary. I 18. SERVICES TO THE PUBLIC. LESSEE shall make its services available to the public without unjust discrimination, and shall refrain from imposing or levying excessively discriminatory or otherwise unreasonable charges or fees for any use of its facilities or services; provided, however, that LESSEE shall have the privilege to refuse -10- 1 service to any person or persons for just cause, but not to discriminate by virtue of race, color, or creed. 19. REVOCATION OF LEASE, PERMIT, LICENSE, OR AGREEMENT. LESSOR shall have the right to terminate any lease, permit, license, or agreement (including that of LESSEE herein) covering a commercial or noncommercial operation, and to revoke a lease, permit, license, or agreement on any land or facility at the Airport ( including that of LESSEE herein) for any cause or reason provided by these standards, by the lease, permit, license, or agreement itself , or by law, or upon the happening of one or more of the following: a. Filing a petition of voluntary or involuntary bank- ruptcy by the lessee, permittee, licensee, or operator. b. The making by the lessee, permittee, licensee, or operator of any general assignment for the benefit of creditors. C. The abandonment or discontinuance of any operation at the Airport by a commercial operator; or the failure to conduct any service, operation, or activity which the lessee, permittee, licensee, or operator has agreed to provide under the terms of his contract with the City of Redding. If this condition exists for a period of ten (10) days without prior written consent of the City of Redding, it will constitute an abandonment of the 1 land or facilities and the lease, permit, license, and/or agreement shall become null and void. d. The failure of a lessee, permittee, licensee, or operator to pay promptly when due all rents, charges, fees, or other payments owed to the City of Redding in ' accordance with his contract with the City. e. The failure of the lessee, permittee, licensee, or operator to remedy any default, breach, or violation of the Airport Rules and Regulations by him or his employees within thirty ( 30) days after notice from the City of Redding. -11- I , a j f . Violation of any of these standards and rules and regulations, or failure to maintain current licenses required for the operations permitted under his or her i lease, permit, license, and/or agreement with the City of Redding. g. Intentionally supplying the City of Redding with false or misleading information or misrepresenting any material fact on the application or documents, or in statements to or before the City, or intentionally failing to make full disclosure on a financial statement, or other required documents. h. The failure of the licensee, permittee, licensee, or operator to perform any provision or covenant within his contract with the City of Redding. 20. AMENDMENT. LESSOR may, by City Council Resolution, amend this Lease to include minimum operating standards applicable without discrimi- nation to all aviation fixed-base operators conducting commercial aviation business at either Benton Airpark or Redding Municipal Airport. 21. BREACH. 1 Upon written notice from LESSOR to LESSEE that LESSEE is I committing a material breach of any term, covenant, condition, or agreement of this Lease, LESSEE shall forthwith cure such breach. In the event LESSEE has not cured such breach within thirty ( 30) days following the mailing of such written notice to LESSEE by LESSOR, LESSOR shall have the right to enter and take over the demised Premises and exclude LESSEE therefrom. This right shall be ' in addition to any and all other rights possessed by LESSOR I under the laws of the State of California relating to landlord and tenant. -12- i 22. WAIVER. No delay or failure by any party to exercise any right, power, or remedy with regard to any breach or default by such party under this Lease, or to insist upon strict performance of any of the provisions hereof , shall impair any right, power, or remedy of such party, and shall not be construed to be a waiver of any breach or default of the same or any other provision of this Lease. The waiver by LESSOR of any breach or default of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant, or condition, or any Isubsequent breach of the same, or any other term, covenant, or condition herein contained. 23. DEFAULT. If LESSEE shall be in arrears in the payment of rent for J thirty ( 30) days or more, or if the transfer or assignment, voluntarily or involuntarily, of this Lease or any interest therein is attempted, except as herein provided, or if LESSEE violates or neglects or fails to keep, observe, and perform any of the covenants, promises, or conditions herein contained which are on its part to be kept, observed, and performed, LESSOR may, at its election, give LESSEE written notice of such default. If such default shall continue for sixty ( 60) days, and LESSEE has failed to commence good faith efforts to cure such default within said period, LESSOR shall have the right at any time thereafter and while such neglect or default continues to enter into or upon said Premises, or any part thereof , and repossess the same, including all buildings and improvements thereon, and expel i LESSEE and those claiming under LESSEE, and remove their effects, forcibly if necessary, without prejudice to any remedies which might otherwise be invoked by LESSOR. I -13- i i 24. EMINENT DOMAIN. In the event the entire Premises shall be appropriated or taken under the power of eminent domain by any public or quasi- public authority, this Lease shall terminate and expire as of the I date of such taking, and LESSEE shall thereupon be released from I any liability thereafter accruing hereunder. In the event a portion of the Premises is taken under the power of eminent domain by any public or quasi-public authority, such that the improvements thereon cannot, in LESSEE' s opinion, be used for its intended purposes, LESSEE shall have the right to terminate this Lease as of the date LESSEE is required to vacate a portion of the Premises , upon the giving of notice in writing of such election within thirty ( 30 ) days after said Premises have been so appropriated or taken. In the event of such termination, both LESSOR and LESSEE shall thereupon be released from any liability thereafter accruing hereunder. LESSOR agrees, immediately after learning of any appropriation or taking, to give LESSEE notice thereof in writing. If the Premises are taken, or LESSEE elects to terminate upon a partial taking, LESSOR agrees to offer to lease to LESSEE similar space on similar terms for a term equal to the remaining term hereunder, if any such land is available for lease at the J Benton Airpark. If this Lease is terminated in either manner hereinabove provided, LESSOR shall be entitled to the entire award or compen- sation for the land in such proceedings, but the rent and other charges for the last month of LESSEE' s occupancy shall be prorated and LESSOR agrees to refund to LESSEE any unused portion of said rent or other charges paid in advance. LESSEE' s right to j receive compensation or damages for its improvements, fixtures, personal property, and for the moving or relocation expenses shall not be affected in any manner hereby, and LESSEE reserves j -14- d i the right to bring an action for such compensation or damages, including loss of business, leasehold interest, and other reasonable damages . I 25. BANKRUPTCY OR INSOLVENCY. a If LESSEE shall be adjudged bankrupt, either by voluntary or involuntary proceedings, or should be the subject of any proceedings to stay the enforcement of obligations against it in the form of reorganization or otherwise under and pursuant to any existing or future laws of the Congress of the United States, or if LESSEE shall discontinue business or fail in business, or abandon or vacate said real property, or make an assignment for the benefit of creditors, or if said real property should come into possession and control of any trustee in bankruptcy, or if any receiver should be appointed in any action or proceeding with power to take charge, possession, control, or care of said property, LESSOR shall have the option to forthwith terminate this Lease, and reenter the property and take possession thereof. In no event shall this Lease be deemed an asset of LESSEE after adjudication in bankruptcy. 26. CANCELLATION. This Lease may be cancelled by either party at any time during the term of this Lease upon thirty ( 30) days' advance written notice of such cancellation. 27. SURRENDER. At the termination of this Lease, by lapse of time or other- wise , LESSEE shall surrender possession of the Premises to LESSOR; deliver all keys to the Premises and all locks therein to 1� LESSOR; make known to LESSOR the combination of all combination locks in or on the Premises; and return the Premises and all -15- 1 I i t • I I equipment and fixtures of LESSOR therein to LESSOR in broom-clean { condition and in as good a condition as when LESSEE originally i took possession, ordinary wear and tear excepted, failing which LESSOR may restore the Premises and such equipment and fixtures to such condition and LESSEE shall pay the cost thereof to LESSOR on demand. 28. ADMINISTRATION BY LESSOR. I Whenever LESSEE is required to secure the approval or consent of LESSOR under this Lease, "LESSOR" shall mean the Director of Airports of the City of Redding. However , at the option of the Director of Airports of LESSOR, or the LESSEE, any such questions may be referred to the City Council of the City of Redding, whose decision thereon shall be final. 29. ENTIRE AGREEMENT. This Lease sets forth the entire agreement between the parties hereto. Modifications or additions to this Lease shall be considered valid only when mutually agreed upon by the parties in writing. 30. INVALID PROVISIONS. In the event any covenant, condition, or provision herein contained is held invalid by any Court of competent jurisdiction, the invalidity of the same shall in no way affect any other covenant, condition, or provision herein contained, provided that i the validity of any such covenant, condition, or provision does I not materially prejudice either LESSOR or LESSEE in their respective rights and obligations contained in the valid covenants, conditions , and provisions of this Lease. -16- I 31. NOTICE. Any notices or demands that may be given by either party 1 hereunder, including notice of default and notice of termination, shall be deemed to have been fully and properly given when made in writing, enclosed in a sealed envelope, and deposited in the I United States Post Office with postage prepaid, certified mail, addressed as follows: To LESSOR c/o Director of Airports, City Hall, 760 Parkview Avenue, Redding, California 96001-3396 ; and to d LESSEE at 2600 Gold Street, Redding, California 96001. 32. ATTORNEY' S FEES. In case suit or action is instituted to enforce any of the provisions of this Lease, the prevailing party therein shall be 9 entitled to attorney' s fees and other sums as may be adjudged reasonable and necessary at trial and on appeal. i 33. BINDING ON SUCCESSORS. .J The provisions and conditions of this Lease shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. 34. TIME OF ESSENCE. Time is of the essence of this Lease and of each and every provision thereof . 35. CEQA. It has been determined that this matter is categorically exempt from the provisions of the California Environmental Quality Act. i IN WITNESS WHEREOF, the City of Redding and Hillside Aviation, Inc. have executed this Lease in the presence of their � -17- i i I respective officers duly authorized in that behalf on the day and year set forth below. CITY OF REDDING i Date: 1991 By: NANCY BUFFUM, Mayor j HILLSIDE AVIATION, INC. Date 1991 By: 'STEVE MILLER, President I I ATTEST: ETHEL A. NICHOLS, Clerk 1 FORM APPROVED: RANDALL A. HAYS, City Attorney I -18- i i f i I EXHIBIT "A" HILLSIDE AVIATION LEASE AREA a Commencing at a point on the centerline of the runway of Benton Airpark, which point is designated as Engineer' s Station Of00 on the plans for grading and paving of Benton Airpark and which point has the following California State Plane Coordinates: E = 1 , 887 , 007.07 N = 453, 535. 89 thence S. 7003108" E. , on and along the centerline of said runway, a distance of 1202 feet to Engineer ' s Station 12J02 S. , Of00 E. ; thence N. 82056152" E. , a distance of 247 feet to the true point of beginning of this description, which is Engineer ' s Station 12402 S. , 2447 E. ; thence N. 82056 ' 52" E. , a distance of 198 feet to Engineer' s Station 12402 S. , 4445 E. ; thence S. 7003108" E. , a distance of 35 feet to Engineer' s Station 12437 S. , 4-/45 E. ; thence S. 82056152" W. , a distance of 198 feet to Engineer' s Station 1237 S. , 2447 E. ; thence N. 7003108" W. , a distance of 35 { feet to the true point of beginning of this description. Containing 6930 square feet. i I I i i I i i 1 ST REED ?LJACCR STA, 0+00 POINT OF COMMENCEMENT ST. JOSEPH SCHOOL 9 I i I i I I i I 1 I o BENTON AIRPORT i Iw r N 0 IN 0 ICD- TRUE POINT OF BEGINNING 1 I � I N. 82 5 '521E, 198. 00 35, 00 ' El 247, 00 ' w > 198, 001 cl� A Y i CL I Ice I I i I EXHIBIT B HILLSIDE AVIATION LEASE AREA 1